Bankrate’s annual analysis of the best states to retire in has positioned Delaware at the top of the list for 2024, followed closely by West Virginia and Georgia. This ranking is based on a comprehensive evaluation of several critical factors, including affordability, well-being, healthcare quality, weather conditions, and crime rates.
Delaware emerged as the premier retirement destination this year, surpassing its previous second-place ranking. The state offers a significant advantage with its lower property taxes compared to the national average and the absence of state and local sales taxes. This tax-friendly environment is particularly beneficial for retirees, as Delaware also exempts Social Security benefits from state taxation. The state’s demographic profile includes a higher percentage of retirees, which adds to its appeal. Despite having higher costs for housing and healthcare than many other states, Delaware’s diversity, favorable climate, and affordable insurance options contribute to its top ranking.
West Virginia secured the second position largely due to its low cost of living and property taxes. However, it faces challenges in healthcare affordability and quality, which impacts its overall attractiveness as a retirement destination. The state’s middle-of-the-road ranking for general wellness also affects its standing. Nevertheless, the affordability aspect makes West Virginia a viable option for many retirees seeking budget-friendly living.
Georgia saw a significant improvement, climbing from 15th place last year to third this year. This rise can be attributed to decreasing living costs and improvements in healthcare access. Despite still having relatively low scores in terms of overall well-being and crime rates, Georgia’s enhanced affordability and lifestyle options make it a strong contender for retirees. The state’s appeal is bolstered by its combination of lower living expenses and an improved healthcare system.
South Carolina also experienced a notable upward shift, moving from 19th to fourth place. The state benefits from high rankings in affordability and pleasant weather, which contribute to its improved position. While South Carolina still faces some challenges in terms of healthcare and crime, its overall cost-effectiveness and favorable climate make it a popular choice for retirees seeking a balance between expense and quality of life.
Florida, traditionally known as a retirement haven, is ranked eighth this year. The state’s appeal lies in its absence of an income tax and its sunny weather, which continue to attract retirees. However, high homeowners’ insurance costs have negatively impacted Florida’s ranking. Despite this, Florida remains a favored destination due to its tax advantages and desirable climate.
At the lower end of the ranking, Alaska continues to be the least favorable state for retirement. The high cost of living, including expensive healthcare and challenging weather conditions, significantly detracts from its appeal. Similarly, New York, Washington, and California also rank poorly due to their high costs of living, despite offering high-quality healthcare services. The affordability crisis in these states makes it difficult for many retirees to maintain a comfortable lifestyle, despite their other advantages.
Recent trends have shown that many older Americans are reevaluating their retirement plans due to financial pressures, inflation, and job loss. Some are relocating to more affordable states or countries, while others are adjusting their retirement strategies by taking on part-time work or delaying Social Security benefits. Delaying benefits can be advantageous, as it increases by 8% for each year the claimant waits until age 70.
For those considering their retirement options or facing financial concerns, Bankrate’s ranking offers valuable insights into the best states for retirement. It provides a detailed assessment of various factors that can help retirees make informed decisions about where to live in their retirement years.